Deutsche Bank cuts ties with 3,400 clients in trading business
Reuters
Published Dec 02, 2016 03:18PM ET
Deutsche Bank cuts ties with 3,400 clients in trading business
By Arno Schuetze
FRANKFURT (Reuters) - Deutsche Bank's Global Markets division will cut ties with about 3,400 clients in its debt and equities sales activities, the bank said on Friday. Deutsche Bank (DE:DBKGn) will immediately cease debt sales services to some financial institutions and hedge funds as well as equity sales activities, the execution of equities trading orders and equity structuring activities for some clients, a spokesman said, citing an internal memo.
Germany's biggest bank is looking to shed clients that cost more to service than they bring in in returns as part of efforts to turn around its business and boost its capital.
Deutsche Bank Chief Executive John Cryan is stepping up the restructuring process as the bank finalises talks with U.S. justice authorities over a multi-billion dollar fine related to U.S. mortgages.
In October 2015, Cryan had said at a strategy presentation that Deutsche Bank would reduce the number of clients in its Global Markets and Corporate & Investment Banking divisions by about 50 percent.
"We expect to off-board about half of the current list of clients as the economic returns in these relationships are inadequate to us," he said at the time. He also said that 80 percent of the investment bank's income came from 30 percent of clients.
Deutsche Bank is still among the top 5 trading houses in debt and top 10 in equities globally, according to research firm Coalition. But the bank has lost market share as it retreats from a period of expansion, in which it had focused mainly on revenue growth and less on profitability.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.